Energy and Mining Minister Petar Djokic said electricity output in Bosnia and Herzegovina’s Republika Srpska can typically run about 35% above domestic demand. He said that surplus largely vanished during the summer due to dry weather cutting hydropower generation. Djokic also cited an extended period when the Ugljevik thermal power plant remained offline.
Djokic said the Gacko coal plant continued operating during the same period. He added that Ugljevik is expected to return to service, but domestic generation remains constrained. State-owned utility ERS has therefore had to buy electricity on the market.
Electricity pricing and financing constraints
The government is not planning an electricity price increase for now. Djokic said regulated prices are low, which limits producers’ ability to finance maintenance and reliability improvements. He linked those constraints to the need for ongoing system upkeep while generation remains affected by outages and drought conditions.
Solar, wind and hydropower build-out at ERS
Republika Srpska has close to 400 MW of solar capacity, mostly in smaller projects. Two larger solar plants have been completed, while several additional projects are under construction. ERS is also developing a wind farm and two major hydropower projects.
Djokic estimated the value of current and planned energy investment at around €2.75 billion. He said the programme is intended to reduce exposure to drought, thermal plant outages and regional power-price volatility. Rapid solar additions are also creating a balancing challenge because generation is concentrated during daylight hours.
New gas pipeline from Sepak to Novi Grad
The government is preparing a new gas pipeline from Sepak to Novi Grad. The project is valued at €650 million excluding VAT, with construction expected to start in the coming weeks. Financing is planned through the state budget over five years.
For this year’s budget, around €375 million has been allocated for investment related to the pipeline. The preparation work is part of Republika Srpska’s broader shift toward new generation and gas infrastructure following supply risks highlighted by drought conditions and reduced thermal output.
